Most dictionaries recommend T-shirt, and most edited publications follow suit. Yet t-shirt is gaining ground, and both tee-shirt and tee shirt have some adherents.
For example, a few of our favorite newspapers use T-shirt:
He wore a faded long-sleeve shirt covered by another rumpled T-shirt. [New York Times]
He was breakfasting seated on the sofa, clad in a dressing gown that was open to reveal his night attire of T-shirt and boxer shorts. [Guardian]
The Washington Post likes t-shirt:
There’s a lot there, some more serious than t-shirt cannons, if you can believe that. [link]
And a few publications spell out the tee, although there’s no consistency in the use of the hyphen—for example:
Adult tops can range from $45-$100 just for a tee shirt and the infant/toddler clothing is not much better. [Kansas City Star]
On those days, the optimal outfit would be tennis shoes, yoga pants, and a long sleeve tee-shirt. [Reuters]
There is no correct or incorrect spelling. Use whichever seems best to you.

